‘Sell It Here’: Mike Novogratz Bearish After Litecoin Price Surge

‘Sell It Here’: Mike Novogratz Bearish After Litecoin Price Surge

Legendary trader and prominent bitcoin bull Mike Novogratz said that he does not believe that the litecoin price will sustain its dramatic early-week rally and he would “sell it here.”

Speaking with CNBC, Novogratz — the founder of crypto hedge fund Galaxy Investment Partners — stated that although he believes bitcoin represents a buying opportunity for investors even after its fourth-quarter rally, he does not think that litecoin offers the same upside.

“I don’t think [the litecoin rally] has the same legs as bitcoin,” he said. “I’d sell it here” and buy bitcoin.

Over the course of the past week, the litecoin price has more than tripled, and on cryptocurrency exchange GDAX it briefly crossed $400. At present, the litecoin price is trading at a global average of $336, making it the fifth-largest cryptocurrency by total market cap.

Source: CoinMarketCap

Novogratz attributed the rally to an “agile promoter” — presumably Litecoin creator Charlie Lee, who has made several high-profile media appearances this week — and hype around lightning network technology, which is expected to be integrated into both Bitcoin and Litecoin.

Another theory is that Coinbase users, many of whom are new to the cryptocurrency markets, are buying litecoin because it appears “cheap” compared to bitcoin and ethereum, the other two cryptocurrencies offered on the brokerage platform.

Novogratz said that rallies such as litecoin’s are a byproduct of the industry’s “speculative mania,” as well as the fact that none of the protocols — not even Bitcoin — are ready for “prime time.”

“This is what a speculative mania feels like. We are in the middle of a speculative mania, and phase one of this whole decentralized revolution is just selling the story. None of these protocols are going to be ready for prime time for at least two to three years, so we’re selling the story of what the future is going to be,” he said.

Of course, Novogratz is quick to admit that his bets have been wrong before. Although he called bitcoin’s ascent to $10,000, he believed that achievement would trigger a selloff. Consequently, he sold some of his holdings, waiting to buy back in following a dip that never came.

“Cost me a fortune,” he said.

Featured image from Bloomberg.

04.03.2018 / 10:31 38
Hong Kong Bitcoin Exchange Gatecoin Finds Banking Lifeline, Adds Litecoin Hong Kong Bitcoin Exchange Gatecoin
Hong Kong cryptocurrency exchange Gatecoin has confirmed plans to resume HKD and USD bank transfers through new partners after suffering a banking
Litecoin Price Leaps 30% to New All-Time High Litecoin Price Leaps 30% to New
Litecoin price leaped by nearly a third on Monday, raising the sixth-largest cryptocurrency to a new all-time high. Litecoin Price Touches $185 For
Litecoin Price Spikes 82% in a Single Day to Hit $300, Surpasses IOTA Litecoin Price Spikes 82% in a Single
The Litecoin price has achieved $300, as it surpassed IOTA with a $15 billion market cap, to become the fourth largest cryptocurrency in the world
Ethereum, Litecoin Prices Headline $20 Billion Altcoin Rally Ethereum, Litecoin Prices Headline $20
The cryptocurrency markets achieved another comprehensive advance on Tuesday, but — breaking from recent norms — the bitcoin price was not leading
‘Conflict of Interest’: Litecoin Creator Charlie Lee Sells His Entire LTC Balance ‘Conflict of Interest’: Litecoin
Litecoin creator Charlie Lee revealed on Wednesday that he had liquidated his entire LTC balance and donated it to the Litecoin Foundation, although
Litecoin Price Jumps Nearly 30% as Founder Lee Remains Upbeat Litecoin Price Jumps Nearly 30% as
Litecoin price posted one of the biggest gains today, jumping from $236.76 at the start of the day to a high of $305.66 around noon Saturday (UTC),
Comments (0)
Add a comment
Comment on